1. Ordinance 1656 - Amending Ordinance 1587 - Impact Fees - 1st Readingr
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TO: Mayor Pamela B. Kennedy
and Kalispell City Council
FROM: Charles Harball, City Attorney
Myrt Webb, Interim City Manager
SUBJECT: ordinance No. 1050 -- Amending ordinance 1587 —
Establish.ing Procedures for Contributions in Lieu of
Impact Pees to Fund Capital Improvements
STING DATE: Monday, March 9, 2009 — Regular Council Meeting
BACKGROUND: Some of the community comments about the proposed
transportation impact fees centered on some uncertainty or misunderstanding
about how the City might administer offsets to contributions that developers may
make to the Capital Improvement Plan (CIP), such as the construction of a portion
of a roadway on the CIP. ordinance No. 1056 amends a portion of the previously
adopted. ordinance No. 1587, and sets forth the process and requirements of offsets
with more specificity.
RECO A.TION: That Council pass ordinance No. 1050 establishing certain
procedures for the consideration of offsets, otherwise known as contributions in lieu
of impact fees, to fund capital improvements.
FISCAL EFFECTS: The amplification of the existing ordinance should be helpful
to the City and the development community to better understand how offsets to
impact fee requirements will be administered. This may have a beneficial fiscal
impact by eliminating some perplexity about the issue and calming investor
concerns.
Respectfully submitted,
01
Charles Yialall, City Attorney Myrt ebb, Interim City Manager
ORDINANCE NO.1656
AN ORDINANCE AMENDING PORTIONS OF ORDINANCE 1587 ENACTED ON
OCTOBER 16, 2006 CODIFIED AS KALISPELL CITY CODE 8-32 AUTHORIZING AND
ESTABLISHING THE PROCEDURE FOR CONTRIBUTIONS IN LIEU OF IMPACT FEE
PAYMENTS TO FUND CAPITAL IMPROVEMENTS IN THE CITY OF KALISPELL AND
DECLARING AN EFFECTIVE DATE.
WHEREAS, Montana state law at MCA. 7-6-1601 through 7-6-1604 authorizes the establishment
and imposition of impact fees by municipalities to fund capital improvements made
necessary by new demand on public facilities; and
WHEREAS, an impact fee represents a fee for service payable by all users creating additional
demand on a city facility; and
WHEREAS, the Kalispell City Council enacted ordinance 1557 on October 16, 2006 that authorized
and established, among other things, the procedures for contributions in lieu of impact
fee payments to fund capital improvements in the City of Kalispell; and
WHEREAS, it is the finding of the City Council that it is in the best interests of the City of
Kalispell that certain impact fees be imposed to fund capital improvements and that
current established procedures be amplified to ensure compliance with state law.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONT.ANA,
THAT THE KALISPELL CITY CODE BE AMENDED TO READ AS FOLLOWS:
SECTION I. 8-32 Contributions in Lieu of Impact Fee Payments - Offsets.
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A. offsets against the amount of a develo ment ins act fee due from a new
develo ment shall be provided for contributions made or to be made in the future b
the affected property owner in cash orb dedication of land orb actual
construction of all or art of a public facility or vublic facilities identified in an
adopted CIP and meeting -or exceeding the demand aenerated by the new
development.
B. The amount of any excess contribution shall be determined by the Director of
Public Works and the Director of Finance upon receipt. of an__application form
re uestin an offset; provided, however, that a the City will make no reimbursement
for excess contributions unless and until the particular development.. ism act fee
account has sufficient revenue to make the reimbursement without overdrawiniz the
account or je.opardizina the continuity of the Cit 's Capital Improvements Program;
and b the excess contribution may not be transferred or credited to an other t es
of development impact fees calculated to be due from that development for other
t es of public facilities. The determination of the eligibility for and the amount of
the offset shall be made by the Director of Public Works and the Director of Finance
based on the fair market value of the proposed dedication construction or
contribution as established by appraisals and construction receipts or construction
bids as applicable. If the applicant contends that anv aspect of the Cit 's decision
constitutes an abuse of discretion the..,applicant shall be entitled to appeal pursuant to
Kalis ell Cit Code 8-33.
C. offsets for dedication of land or rovision of public facilities shall be applicable
only as to development impact fees im osed for the same types.of public facilities
that are proposed to be dedicated orrovided. Even if the value of the dedication of
land or rovision of a public facility exceeds the develo meat im act fee due for the
type of public facilit the excess value may not be transferred to development im act
fees calculated to be due from the applicant for other types of ublic facilities for
which development impact fees may be imposed. offsets for excess capacity may,
however, be transferred to the same applicant or to other applicants for new
development that creates a demand for the same type of vublic facilit and which
development impact fees are due vursuant to this Cha ter.
D. Anv offset or reimbursement shall be pursuant to a duly executed development
agreement.
E. No offsets shall be given for the construction of local on -site facilities structures
improvements, or other project im rovements required.by...zo.ning, subdivision or
other cit state or federal regulations unless the improvement is identified in the
Capital Improvement Program or there is a findin that the ro osed im rovements
meet the same need as improvements identified in the Ca ital Improvements
Program.
SECTION II. This Ordinance shall be effective thirty (30) days from and after the date of
its final passage and approval.
PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR THIS
DAY of MARCH, 2009.
Pamela B. Kennedy
Mayor
ATTEST:
Theresa White
City Clerk